Series 24: Regulation M, Rule 101 And Rule 102– PurchasingDuring Restricted Periods

Regulation M, Rule 101 and Rule 102– PurchasingDuring Restricted Periods

Rule 101 forbids underwriters and their affiliates from purchasing or inducing someone else to purchase a covered security during a restricted period in connection with a public offering. Rule 102 prohibits this activity by issuers and their affiliates.

A covered security is any security that is governed by federal regulations, which accounts for most securities. A restricted period is that period beginning up to five days prior to the pricing of a new issue and ending once the public offering is completed. Regulation M applies principally to new issues of securities that are already be